GM Launches New Chinese Brand

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Thread: GM Launches New Chinese Brand

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    GM Launches New Chinese Brand

    GM Launches New Chinese Brand
    Growing demand has spurred a new brand out of GM's Chinese JV.
    www.gminsidenews.com
    July 18, 2010
    By: Nick Saporito


    Baojun's official logo.

    Today General Motors announced that, in conjunction with its Chinese joint-venture, it would be starting up another brand in China. The joint-venture has been for mini-commercial vehicles and consists of GM, SAIC and Wuling. The new brand has been dubbed "Baojun" and will be sold at Wuling dealerships throughout China.

    The joint-venture claims that escalating demand for affordable vehicles has caused them to initiate the Baojun brand. According to GMI sources, Baojun will be marketed as an entry-level brand as the Chevrolet brand continues to move up-market globally.

    “Baojun is being positioned as a reliable partner with an image that is confident, smart and dependable,” said Shen Yang, General Manager of SAIC-GM-Wuling. “We aim to surpass customer expectations by creating a brand that combines world-class quality with low ownership costs.”

    According to GM, the joint-venture has developed one vehicle for Baojun. GM declined to provide any details on what type of vehicle the brand will launch with. Sources have indicated that Baojun will leverage retiring GM platforms to keep costs low and provide entry-level vehicles.

    Sources have also told GMI that the GM management is looking into eventually spreading the new brand to other growth markets. Said markets would likely include India and Russia.

    Baojun is the Chinese translation for "treasured horse."

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    Re: GM Launches New Chinese Brand

    Nice

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    Re: GM Launches New Chinese Brand

    Why?

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    Re: GM Launches New Chinese Brand

    Quote Originally Posted by Butz View Post
    Why?
    China's car market is currently growing, however for how much longer?

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    Re: GM Launches New Chinese Brand

    Quote Originally Posted by Butz View Post
    Why?
    It's GM, you can never have enough brands. Plus it worked so well last time.

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    Re: GM Launches New Chinese Brand

    Quote Originally Posted by throwback View Post
    It's GM, you can never have enough brands. Plus it worked so well last time.
    This is a level below Chevrolet. Its using old platforms and old technology to provide vehicles to everyone.

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    Re: GM Launches New Chinese Brand

    Well, I'd rather them do this than water down the Chevrolet brand. And I guess they figured Wuling was just for vans. So it's not that bad.
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    Re: GM Launches New Chinese Brand

    Quote Originally Posted by Butz View Post
    Why?
    Because the old GM is still alive and kicking. They see an opportunity and take it, they want to be the biggest and will do everything to do it.
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    Re: GM Launches New Chinese Brand

    They should name one of the models Mustang, one Cavalier, one Charger, one Impala...
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    Re: GM Launches New Chinese Brand

    I think it is a good move because China is divided up into China A and China B. China A is the developed country we'd expect in a developed country. China A consists of roughly 250 - 300 million people. China B consists of everyone else, upwards of a BILLION people. People who are farmers in the rural sections of the country that have developed some savings and want to enter the 20th century; and no I didn't say 21 century. Wuling is already huge in China because they sell to the rural folks, now GM is in another venture to sell a "Geo" version of old platforms to this traditional, but undeveloped demographic. They are thing to fill all wants of the consumer as they did in the U.S. Alfred Sloan and the old GM are still alive and obviously prospering.
    Sold:
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    Re: GM Launches New Chinese Brand

    Quote Originally Posted by GM-Joe View Post
    Because the old GM is still alive and kicking. They see an opportunity and take it, they want to be the biggest and will do everything to do it.
    Quote Originally Posted by GM-Joe View Post
    I think it is a good move because China is divided up into China A and China B. China A is the developed country we'd expect in a developed country. China A consists of roughly 250 - 300 million people. China B consists of everyone else, upwards of a BILLION people. People who are farmers in the rural sections of the country that have developed some savings and want to enter the 20th century; and no I didn't say 21 century. Wuling is already huge in China because they sell to the rural folks, now GM is in another venture to sell a "Geo" version of old platforms to this traditional, but undeveloped demographic. They are thing to fill all wants of the consumer as they did in the U.S. Alfred Sloan and the old GM are still alive and obviously prospering.
    Which is it that you are saying??? LOL

    You seem to be contradicting yourself.

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    Re: GM Launches New Chinese Brand

    Quote Originally Posted by nsap View Post
    GM Launches New Chinese Brand
    Growing demand has spurred a new brand out of GM's Chinese JV.
    www.gminsidenews.com
    July 18, 2010
    By: Nick Saporito

    Today General Motors announced that, in conjunction with its Chinese joint-venture, it would be starting up another brand in China. The joint-venture has been for mini-commercial vehicles and consists of GM, SAIC and Wuling. The new brand has been dubbed "Baojun" and will be sold at Wuling dealerships throughout China.

    The joint-venture claims that escalating demand for affordable vehicles has caused them to initiate the Baojun brand. According to GMI sources, Baojun will be marketed as an entry-level brand as the Chevrolet brand continues to move up-market globally.

    “Baojun is being positioned as a reliable partner with an image that is confident, smart and dependable,” said Shen Yang, General Manager of SAIC-GM-Wuling. “We aim to surpass customer expectations by creating a brand that combines world-class quality with low ownership costs.”

    According to GM, the joint-venture has developed one vehicle for Baojun. GM declined to provide any details on what type of vehicle the brand will launch with. Sources have indicated that Baojun will leverage retiring GM platforms to keep costs low and provide entry-level vehicles.

    Sources have also told GMI that the GM management is looking into eventually spreading the new brand to other growth markets. Said markets would likely include India and Russia.

    Baojun is the Chinese translation for "treasured horse."
    “We aim to surpass customer expectations by creating a brand that combines world-class quality with low ownership costs.” Sounds like what GM should be doing with Chevrolet.

    I am not surprised that there will be a new brand for the Chinese market and it was more than likely pushed for from the SAIC/Wuling side - makes sense, a Chinese brand for a market the size of China will do well going forward although it also means it will be a brand that will eventually find it's way to the U.S. market. If GM works it right it could sell Baojun brand vehicles in Europe, similar to the Dacia brand that has done so well with a sturdy, proven design at a low price.

    Wonder what "retiring GM platforms" will be offered, GM offers the Aveo and Cruze in China as Chevrolets and the Sail looks alot like a Spark to me, but not sure if it is based on the new Spark or something else.

    I would think GM would lean more towards small ex-Opels to avoid duplicating Chevrolet's lineup and could use some Brazilian market "Chevrolets" as Baojun models if Chevrolet moves upmarket with the next Spark and Aveos becoming Baojun models. GM could also offer the next gen Agile as a Baojun model and the Combo and Montana trucks as Wulings matching up Wuling and GMC's smaller models as well to broaden their global market.
    Last edited by SierraGS; 07-18-2010 at 05:34 PM.

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    Re: GM Launches New Chinese Brand

    This is a smart move.

    This way, if Chevrolet wants to move upmarket, it isn't hampered by low-cost products like the Sail...

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    Re: GM Launches New Chinese Brand

    This joint venture really irks me ...
    when they sold thier majority stake, they moved sideways
    now they are stepping backwards creating an all new brand that will cost millions to get off the ground...So now Chevy and Baojun will be fighting for marketing money ...

    They should have just kept Chevy ... China Chevy is no China Buick ... the Chevy name has no prestige there and should never move upmarket because it would then be fighting with Buick
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    Re: GM Launches New Chinese Brand

    Quote Originally Posted by fp115 View Post
    This is a level below Chevrolet. Its using old platforms and old technology to provide vehicles to everyone.
    Pontiac resurrected?

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